Mergers and Acquisitions: Their Role in the Process of Diversification of an Enterprise

Abstract

This article aims to present the possibilities of using mergers and acquisitions (M&As) in diversification. Its theoretical part contains definitions of diversification and a review of literature on M&As in enterprise growth. Next, it analyzes the M&A market in Poland compared to the markets of Central and Southeast Europe. It presents diversification in the light of the main theories of firm growth and contains a review of the research on the subject of diversification as a growth concept of companies. The empirical section presents case study analyses of six Polish companies regarding the ways in which the firms pursue diversification. The research shows that the dairy companies engage in product diversification, while the meat firms implement industrial diversification. The companies examined in the course of research exemplify the phenomena connected with the use of M&As in diversification.